To decide a price for a future issue, and the allocation of shares, financial advisers may contact major investors and ask them to place bids over a period of a few days. What term is used for this approach?

Question

Quizplus · Accepted Answer

This approach is called book building, where financial advisers build a book of orders from key investors to determine the price and allocation of shares for a future issue.

To Decide a Price for a Future Issue, and the Allocation